Business Education

5 Ways Small Businesses can Weather Uncertain Economic Times

With regular life all but suspended and so much uncertainty, small businesses will most definitely feel the impact. Although most of it will occur in the short term, it could well have long-term impacts, lasting far beyond the next several weeks. That means it’s time to hunker down and get serious about the situation to minimize any potential damage.

5 Ways Small Businesses can Weather Uncertain Economic Times

The very first thing to do is to review all expenses. Not just some or the top, but everything. You’ll likely be reminded of at least one that’s either unnecessary or simply too costly to maintain in its current status.

In an uncertain economy when every penny counts, even the smallest increase in revenue or reduction in expenses can have an impact on company profitability. The good news is a large-scale company overhaul isn’t necessary. It’s often simple, common sense steps that improve the bottom line, especially for a small business. Q1, 2020 is a good time to step back and look carefully at your business practices. —American Express

Then, it’s time to start to reduce discretionary spending. Here again, don’t just settle for around the margins. Instead, think about where you can cut when it comes to discretionary spending. You’ll probably be surprised by how much you’re wasting and don’t even realize it.

More Ways of Dealing with an Economic Downturn

Of course, those two things won’t do it alone. While reviewing expenses and cutting down on discretionary spending will most certainly help out, you’ll probably be able to do more — a lot more. For instance, you can do the following:

Buy more carefully. This is different from discretionary because these entail essentials. Although these things are necessities to run your business, you can probably get away with buying a little less. Doing so across a few or several items will have a cumulative savings effect that will make a real difference.
Cut down on extras. Overtime, perks, even benefits are all part of this particular category. (You should be doing this periodically, about once to twice per year, anyway.) Again, you’ll likely be a bit shocked by how much these items are costing you, especially when added-up together.
Consider cutting pay. This doesn’t just apply to your employees, but you as the owner, as well. Yes, you. It might be necessary to reduce team member hours, and even take a temporary pay cut yourself. This will not only help you weather the storm, but also, it shows real leadership. Moreover, it sends a clear message that you are part of the solution, rather than part of the larger problem.
Innovate. Huddle up with your key employees and leaders and challenge everyone with to come up with 2 or 3 innovative strategies to create or capture new revenue sources that you are currently not generating. Many successful businesses have found way to survive and in some cases developed entirely new services and products that resulted from innovating during difficult times. Necessity is the mother of invention. Plato.

What other measures would you suggest? Please share your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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How Small Business Owners Can Effectively Navigate Government Bureaucracies

July 14, 2023 No Comments

For small business owners, dealing with government bureaucracies can often be a daunting task. Navigating complex regulations, paperwork, and procedures can consume valuable time and resources. However, with a strategic approach and the right knowledge, small business owners can effectively navigate government bureaucracies and ensure compliance while minimizing administrative burdens. How Small Business Owners Can Effectively Navigate Government Bureaucracies With this in mind, the following article will provide a detailed guide on how small business owners can tackle government bureaucracies efficiently and effectively so they can spend more time doing what’s most important – growing their organizations. Now, let’s get it to, starting with acquiring a firm grip on the applicable rules. Understand Applicable Regulations The first step in navigating government bureaucracies is to understand the specific regulations that apply to your business. Identify the relevant government agencies and familiarize yourself with their mandates, rules, and procedures. This will help you gain clarity on the requirements and expectations set forth by the government, enabling you to comply with them effectively. Seek Expert Advice Government regulations can be complex, and seeking expert advice is crucial to navigate them successfully. Consider consulting professionals such as attorneys, accountants, or a business coach with extensive experience. They can help you understand the legal framework, interpret regulations, and guide you through the bureaucratic processes. Establish Clear Internal Processes Create internal processes and systems within your business to streamline compliance with government requirements. This includes maintaining accurate records, filing necessary reports, and ensuring timely payment of taxes and fees. By organizing your business operations, you can reduce the risk of non-compliance and simplify interactions with government agencies. Utilize Government Resources Government agencies often provide resources, guidelines, and tools to help small businesses understand and comply with regulations. Visit agency websites, attend seminars or webinars, and explore available publications or guides. Take advantage of these resources to gain insights into the regulatory landscape and the specific requirements for your business. Maintain Open Communication Building relationships and maintaining open lines of communication with government officials can be invaluable. Reach out to the appropriate agency contacts and establish connections. Seek clarification on regulations, request assistance when needed, and proactively address any compliance concerns. Regular communication can foster a cooperative relationship with government representatives, making it easier to navigate bureaucracies. Be Proactive in Compliance Proactive compliance is key to minimizing bureaucratic hurdles. Stay up to date with regulatory changes that may affect your business, and make necessary adjustments promptly. Regularly review your business operations to ensure compliance with current regulations. By taking a proactive approach, you can mitigate potential issues before they escalate and avoid unnecessary bureaucratic entanglements. Utilize Technology and Automation Leverage technology and automation tools to simplify administrative tasks and streamline compliance processes. Invest in accounting software, record-keeping systems, and compliance management tools that align with your business needs. Automation can save time, reduce errors, and provide an efficient way to manage regulatory obligations. Engage in Advocacy Joining industry associations or business networks can amplify your voice and provide collective advocacy on regulatory matters. Collaborate with other small business owners facing similar challenges and work together to advocate for regulatory reforms that promote entrepreneurship and reduce bureaucratic burdens. Participate in public consultations and provide feedback on proposed regulations to influence policymaking. Seek Assistance from Small Business Support Organizations There are numerous organizations that offer support and resources specifically tailored to small business owners. Chambers of Commerce, Small Business Development Centers (SBDCs), and other trade associations can provide guidance on navigating government bureaucracies, offer training programs, and connect you with other entrepreneurs who have successfully dealt with similar challenges. While government bureaucracies may appear overwhelming, small business owners can effectively navigate them with the right strategies. By understanding regulations, seeking expert advice, establishing internal processes, utilizing resources, maintaining open communication, being proactive, leveraging technology, engaging in advocacy, and seeking assistance from support organizations, small business owners can overcome bureaucratic hurdles and focus on running their businesses successfully. Remember, navigating government bureaucracies is a continuous process, and staying informed and proactive is essential for long-term success. So, what other advice would you give small business owners who are dealing with government bureaucracies? Please take a few moments to share your experiences or approaches so that others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

How to Avoid Decision Fatigue; Wait, Avoid What?

November 14, 2018 No Comments

Decision fatigue. It’s a phenomenon which probably affects you. Yet, you’re not truly aware of it. Put another way, you’ve likely felt its impact, but just didn’t know what to make of it. Or, more particularly, what to call it. That’s okay. It’s something many people experience a few times. Others are hit with it a lot — a whole lot. Usually, these are individuals in positions of authority. You know, the “decision makers.” Although we joke about it, the truth of the matter is, making decisions gets harder and harder as the day goes on. So, let’s look at some ways to avoid decision fatigue. Is Decision Fatigue Actually Real? The short answer to the question above is a resounding, “Yes!” Decision fatigue is real. In fact, two university researchers examined more than 1,000 decisions made by judges in Israel. Said judges either decided to grant or to deny parole. Prisoners who appeared in the morning, about 9 am, fared quite well. Those offenders had a 70 percent chance of making parole. Decision fatigue can seem harmless enough. Spending a few extra minutes deciding between chicken or beef isn’t the end of the world. But what you may not realize is that those little moments of turmoil could be negatively impacting your business. If left unchecked, decision fatigue can lead to reckless behavior like compulsive spending or, worse, the inability to make any decisions at all. —CNBC.com But, by the time mid-afternoon rolled around, those chances dropped down to just 10 percent. The conclusion, of course, was the judges simply used-up their stamina and therefore, took the simplest and safest way out. Ways to Avoid Decision Fatigue Now, if you’ve ever felt “used-up” at the end of the day, like your brain can’t process any more, decision fatigue is a likely culprit. Here are a few suggestions for how to avoid decision fatigue to better your work performance: Start tomorrow today. At the end of every day, start getting things in order for the next morning. Don’t make big decisions. Just get organized so you’re ready to go when you come back tomorrow. While this might seem too simple, it will have a big impact. Make important decisions early. When you start your day, don’t “ease” into it. Instead, challenge yourself by making the most important decisions when you’re most fresh and have new energy. You’ll see things more clearly and have a better sense of which way to go. Stop second-guessing yourself. In the military, some class instructors tell their students to bite the erasers off of their pencils right before starting a test. It’s not literal — it’s a figure of speech. It means your first intuition is typically the right one; so, don’t second-guess yourself. Snack and exercise every day. It’s a very good practice to have a solid but sensible breakfast in the morning. A light lunch is also a sound practice. But, you might feel a bit worn by mid-afternoon. The cure? Exercise and have a small snack to re-energize. What other ways do you combat decision fatigue? Please share your experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

I Reopened My Business, but Now I’m Short-Staffed, What Do I Do?

February 9, 2021 No Comments

The COVID-19 pandemic and subsequent shutdowns affected different businesses in different ways. Some industries, like financial services, online retail, and even real estate, experienced growth. However, other industries suffered big losses, particularly hospitality, restaurants, and brick and mortar retailers; even some office environments experienced significant setbacks. Now, with plans to reopen and resume business as normal underway, some companies are faced with a labor shortage. Obviously, it’s difficult to service customers without the proper employee support. So, let’s look at some ways to shore up your business staff in short order. Employees are the Single-Most Valuable Business Asset Regardless of what industry your company serves, you’ve probably learned over the years — or have least heard — that employees are true assets to any business. Companies who do not treat their employees as assets suffer from high rates of turnover, low quality work, and often poor morale. Before you start evaluating candidates, ask yourself what traits you want to have in those employees to ensure you’re aligning your new hires with your business objectives. Some common traits that I’ve seen among hiring for eCommerce and physical retailers include flexibility, high energy, and fast learner —Business 2 Community Conversely, businesses that treat their employees as valued assets enjoy quality production, higher rates of production, a strong camaraderie and positive morale, and very low turnover. The reason isn’t a mystery — treat employees well and they will in turn do their best. Of course, that begs the question of how to bring on several people in a short amount of time that will make a good fit? How to Find Quality Employees on Short Notice In order to staff a business quickly, you need to first determine which roles to prioritize. And, know exactly what type of personalities best fit said roles. Here are three attitudes you must embrace to find the right staff in a pinch: Be patient. You probably already have existing employees taking on expansive responsibilities out of necessity. You should continue that practice but with a goal to reach. It’s better to rely on known qualities and compensate them well than to rush through the hiring process simply to fill positions. Start with previous employees to fill empty roles and give them more responsibilities for the short-term. Be flexible. Of course, you should streamline your hiring and training processes. But along with these changes, it’s also smart to think strategically. In other words, if a new hire isn’t working out in a particular role, move him or her into a different position instead of letting them go and having to go through the process all over again. Be confident. Sure, this might be a time of uncertainty. It’s unnerving, upsetting, and can be difficult to cope with. But, if you remain calm and show confidence, that will permeate through the company and help your employees greatly. What other attributes would you suggest business owners take on in order to get through a period of short staff? Please take a moment to share your thoughts and experiences by commenting so others can benefit from your unique perspective. Interested in learning more about business? Then just visit Waters Business Consulting Group.

5 Ways Small Businesses can Weather Uncertain Economic Times